Press Release | Health Care

Working People Win After Agreement Reached to Permanently Repeal 40% ‘Cadillac Tax’ on Health Benefits

AFL-CIO President Richard Trumka on the budget package permanently nixing the “Cadillac tax”:

Working people won a major bipartisan victory today with permanent repeal of the “Cadillac tax.” We are thankful to leaders like Rep. Joe Courtney (Conn.), House Speaker Nancy Pelosi (Calif.), House Ways and Means Chair Richard Neal (Mass.), House Ways and Means subcommittee Ranking Member Mike Kelly (Pa.), Senate Democratic Leader Charles Schumer (N.Y.), and Sens. Martin Heinrich (N.M.), Mike Rounds (S.D.), Sherrod Brown (Ohio), Debbie Stabenow (Mich.) and Mazie Hirono (Hawaii), all who played crucial roles in getting us across the finish line.

This ill-advised and misleadingly named tax was threatening the health care security of millions of working people—pushing employers to hollow out benefits while driving up deductibles and copays. It is simply wrong to penalize workers who have successfully negotiated quality insurance coverage. Universal health care will be achieved by protecting and supporting these plans, not undermining them.

Contact: Carolyn Bobb, 202-637-5018